Paramount's new 'Office of the CEO' now has a leader - while its ex-CEO will still collect a hefty paycheck

By Bill Peters

Ousted CEO Bob Bakish will continue to receive a salary until Oct. 31

Paramount Global has named Chris McCarthy as interim principal executive officer of its new three-executive leadership team, a move that it made "for purposes of the rules and regulations" of the U.S. Securities and Exchange Commission, according to a filing on Friday.

The decision comes after the drama at the media conglomerate earlier in the week, when it ousted former Chief Executive Bob Bakish following reported friction over a possible merger deal. Paramount (PARA) (PARAA) subsequently established the three-person "Office of the CEO" in Bakish's place.

That filing noted that Bakish would stay on the company's payroll - with a monthly salary $258,333.33, according to an agreement - through Oct. 31, when his role as a senior advisor helping with the executive transition ends. His employment with Paramount at large also ends on that date, according to the filing, which said Bakish's departure would be considered a termination without cause.

McCarthy is the president and CEO of Showtime/MTV Entertainment Studios and Paramount Media Networks, subsidiaries of Paramount Global.

Bakish's overall severance is estimated at more than $50 million, according to data from Equilar cited by media reports. According to a filing in April, Bakish's total compensation was around $32 million last year.

Paramount reportedly entered into exclusive merger talks with David Ellison's Skydance Media, which has co-produced Paramount blockbuster films including "Top Gun: Maverick" and some "Mission: Impossible" movies. According to a Reuters report, those talks are unlikely to be extended after the exclusivity window closes on Friday.

On Thursday, the Wall Street Journal reported that Sony Pictures Entertainment (JP:6758) (SONY) and Apollo Global Management (APO) had made a $26 billion bid for Paramount.

Bakish's ouster has raised bigger questions among Wall Street analysts about the path forward for Paramount. The entertainment industry has consolidated and pulled back on programming recently as it strives for profits that are more to investors' liking.

Shares of Paramount were up 4.8% after hours on Friday. During the regular session, they finished 7% lower.

-Bill Peters

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05-03-24 1828ET

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